Daily News | Market is Down Today; EU Anti-money Laundering Act Imposed Requirements on Crypto Market; Starknet Foundation Reissued STRK Airdrops

2024-04-25, 04:30

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## Crypto Daily Digest: The EU Anti-Money Laundering Act imposes requirements on the crypto market; Starknet Foundation reissues STRK airdrops; The new US bill may weaken the influence of stablecoins
First, let's examine the trading activity of <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> ETFs. According to Farside Investor data, on April 24, Grayscale Bitcoin spot ETF (GBTC) funds continued to <a href="/price/flow-flow" target="_blank" class="blog_inner_link">Flow</a> out significantly, reaching 130.4 million US dollars. Meanwhile, Fidelity Bitcoin spot ETF (FBTC) inflow was $5.6 million, and ARK 21 Shares Bitcoin spot ETF (ARKB) inflow was $4.2 million.

The European Parliament has passed a new regulation requiring crypto companies to conduct due diligence to combat money laundering activities. This law requires crypto asset management companies to strengthen customer identity checks and report suspicious activities to authorities. This measure will affect crypto service providers, including centralized crypto exchanges and some gambling services.

As previously reported, the new law will affect crypto service providers (CASPs), such as centralized crypto exchanges, and many other institutions, including gambling services.

Patrick Hansen, EU Strategy and Policy Director of Circle stated that the vote was expected and that the package plan will be officially approved by the European Council and implemented in three years.

The Starknet Foundation announced in an article published on the X platform that they will conduct STRK airdrop reissues for three types of users. Specifically, it includes:
Collective stakers: Initially, the Starknet Foundation planned to distribute STRK to eligible collective stakers through the staking protocol used by users. Although many staking protocols cannot complete this task, the currently supported agreements or entities include Lido, <a href="/price/rocket-pool-rpl" target="_blank" class="blog_inner_link">Rocket Pool</a>, etc.

StarkEx users mistakenly identified as VeVeVe users (mistakenly identified as users of a game called "VeVeVe" running on the Immutable platform): Immutable users identified as non-VeVeVe users in the update list received by the foundation from Immutable will be able to claim STRK through the portal starting today.

VeVeVe users: The foundation is in ongoing discussions with VeVeVe regarding token allocation to determine how to allocate STRK.

As the cornerstone of the crypto market, stablecoins represented by USDT have always received widespread attention. Recently, US senators Cynthia Lumis and Kirsten Gillibrand proposed a new stablecoin bill to regulate the operation of stablecoins in the United States, which may affect their status.

Data shows that <a href="/price/tether-usdt" target="_blank" class="blog_inner_link">Tether</a> (USDT) has a market value of $110 billion, making it the third largest cryptocurrency, while Circle's USDC ranks second with a market value of $34 billion. Both of these stablecoins are pegged to the US dollar.

Standard & Poor's Global Ratings pointed out in a report on Wednesday that the clarity of the US regulatory environment may encourage traditional financial institutions to enter the stablecoin market and potentially weaken Tether (USDT)'s dominant position in the market.

The report states that non-US entities issue USDT and, therefore, is not a payment stablecoin allowed by the proposed bill. This means that US entities cannot hold or trade USDTs, which may reduce the demand for USDTs and boost the issuance of stablecoins in the United States. USDT trading activities are mainly located in emerging markets outside the United States and are driven by retail investors and remittances. With the introduction of the bill above, the situation of stablecoins may change.

Analyst Andrew O'Neill pointed out, "The new regulations may restrict institutions without banking licenses from issuing up to $10 billion in stablecoins, thereby giving banks a competitive advantage."

## Market Trends: The market is generally declining, and Meta is down 18% after market hours
After two days of volatility, the crypto market has fallen, with BTC falling below $64,000 and counterfeit coins generally falling. Regarding macroeconomics, the US stock market also showed volatility, especially after Meta released its first quarter financial report. Due to a significant increase in AI spending, its stock price fell by 18% in post-market trading.
### Market Hotspots:
The fan coin sector has performed outstandingly: fans coins such as PORTO and LAZIO have performed well against the backdrop of a general market downturn, partly due to the enthusiastic participation of the European Championship. Fan tokens typically perform well during major sports events as these events increase the attention and trading activities of related tokens.

Progress in the AI+DePin field: io.net announced that it would airdrop its users, and Whales predicts its on-chain centralized prediction market to have a market value of up to $4 billion. Compared to RNDR in the same field (with a market value of $5 billion), this demonstrates the high growth potential and investor interest.

New developments in the rune sector: The price of DOG tokens in the rune sector has risen due to Rune Stone airdrops to holders, with a market value of $350 million and trading volume exceeding 100 BTC in the short term. Such activities usually stimulate market trading enthusiasm and price fluctuations.

The counter-trend Rise of <a href="/price/eos-eos" target="_blank" class="blog_inner_link">EOS</a>: Affected by the announcement of new token economics policies by the EOS Network Foundation, EOS prices rose 15% against the trend. The new policy includes measures such as destroying 80% of future total supply, closing inflation, setting a supply ceiling of 2.1 billion tokens, a 4-year halving cycle, and minting approximately 950 million EOS. These measures aim to enhance the scarcity and value of EOS.

Although the overall market shows a downward trend, some specific sectors and tokens, such as fan coins, AI+DePin concepts, and rune sectors, have shown relatively strong performance. The new news from EOS has also brought significant price increases. Investors should continue to closely monitor macroeconomic changes, corporate financial reports, and the development dynamics within each sector to understand market trends better and make corresponding investment decisions. Meanwhile, market uncertainty suggests that investors must manage risks appropriately.

## Macro: The decline of technology stocks brings pressure to the market; The Japanese yen has fallen to a 34-year low, sparking discussions on the direction of government intervention
On Thursday, the US stock market showed different trends, with the S&P 500 index slightly rising, the S&P 500 index rising 0.02% to 5,071.63 points, and the Nasdaq Composite Index rising 0.10% to 15,712.75. The Dow Jones Industrial Average fell 0.11% to 38,460.92 points.

Of the 11 sectors in the S&P 500 index, 7 sectors rose, with consumer essential goods, utilities, nonessential consumer goods, and real estate stocks leading the way.

London-listed mining company Anglo American announced on Thursday that they had received a full share acquisition proposal from BHP.AX. If this deal is reached, it will mean that the world's largest listed mining company will also become the world's largest copper producer.

Completing this transaction will also trigger further M&A activities in the global mining industry. As the company is reviewing its assets to increase exposure to metals considered crucial for energy transition, there has been a significant amount of M&A activity in the industry.

In a week of rich financial reports, companies in the technology sector have become the focus of market attention. However, the financial reports of several top companies are not optimistic. The stock price of Meta (META.O) fell 15%, and Instagram's parent company predicted lower-than-expected revenue and increased expenses for the quarter, leading to a deterioration in market sentiment and triggering a sell-off in US technology stocks and technology-related stocks. Alphabet, Microsoft, and Intel will report later on Thursday.

In addition to corporate profits, investors will also pay attention to the US Q1 GDP data released on Thursday and the March personal consumption expenditure data released on Friday. The market expects a 70% chance of a rate cut in September.

The decline in technology stocks has also impacted Asian stock markets, with the MSCI Asia Pacific stock index, the most widely used outside of Japan, falling by 0.7%. The Japanese Nikkei Index fell 1.3%, the Chinese stock market also fell, blue chip stocks such as the CSI 300 Index fell 0.3%, and the Hong Kong Hang Seng Index (. HSI) fell 0.5%.

The Japanese yen/US dollar exchange rate has fallen below $155 for the first time since 1990, raising concerns about Tokyo's intervention. Bank of Japan Governor Kazuo Ueda stated at a seminar held in Washington last week that regardless of the economic situation, the Bank of Japan will eventually begin to reduce its balance sheet and introduce this process. However, Ueda emphasized that the Bank of Japan will not significantly change the pace of bond purchases for the time being, nor will it use asset purchase size as a monetary policy tool.

Regarding commodities, oil prices have slightly fallen due to concerns about a potential slowdown in the US economy, outweighing concerns about the risk of escalating conflicts in the Middle East. US crude oil fell to $82.74 per barrel, while Brent crude oil fell to $87.99 per barrel.

Spot gold rose to $2,320.32 per ounce.

<div class="blog-details-info">
<div>Author:**Sherry S. & Icing**, Gate.io Researcher
<div>Translator:Joy Z.
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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